This is how Canada's alcohol tax hike will impact Ontario
The price of alcohol is set to rise in just over a month with a tax increase on tap for Ontario, along with the rest of the country.
A 6.3 per cent federal tax increase on beer, wine and spirits will go into effect on April 1.
This excise tax automatically climbs every year in accordance with the rate of inflation. When it was introduced in 2017, the federal tax on alcohol rose by two per cent.
The Liquor Control Board of Ontario (LCBO) told CTV News Toronto that their prices are based on a variety of factors: the supplier’s price plus federal import and export duties, freight, levies, a standard mark-up, HST and container deposit.
“Our suppliers set their own pricing (subject to minimum retail prices) and have the option to adjust their pricing up or down throughout the year in response to currency fluctuations, federal taxes or freight rate changes, or price changes by their competitors,” an LCBO spokesperson said.
Retail price increases are determined by alcohol producers, the provincial liquor board explained. Meaning, price hikes that come into effect on April 1 at Ontario liquor stores will vary product-by-product.
“What we are forecasting is if this goes ahead, the price of a 12 pack in Ontario, given everything going on, would go up about 10 per cent,” CJ Hélie, President of Beer Canada, told CTV News Toronto. That increase would be due to a compilation of cost increases across the board for the beer sector, including the price of barley, corn and transportation, alongside the tax.
“It would be more of a gradual thing,” Hélie said about the potential price hike. “That sticker shock is too much. Breweries would look to do it in increments throughout the year.”
In an effort to avoid that scenario, he is pushing for a freeze on the tax until inflation returns to Canada’s two per cent target. “It’s just the worst time to pile on and make things worse,” Hélie said, pointing to the rough patch of pandemic years when the hospitality sector shutdown, dragging sales down by about 3.5 per cent last year.
Advocacy for the tax freeze comes as a new report, funded by Health Canada, found consuming more than two drinks per week constituted a moderate health risk due to evidence linking alcohol to cancer. These guidelines marked a significant change from the previous understanding that men could have up to 15 drinks per week with low risk, and women up to 10.
Restaurants Canada, a national not-for-profit association representing the industry, is also calling for a deferral of the upcoming federal tax increase in order to grant food and beverage businesses more room to “absorb another tax increase at this vulnerable time,” the organization said earlier this week.
Canada’s Chamber of Commerce has called on the federal government to repeal the automatic tax increase or at minimum, freeze it.
CTVNews.ca Top Stories
Half of Canadians have negative opinion of latest Liberal budget: poll
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
NEW 'One of the single most terrifying things ever': Canadian couple among tourists on sinking sailing boat tour abroad
A Toronto couple are speaking out about their “extremely dangerous” experience on board a sinking tour boat in the Dominican Republic last week.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
An Ontario senior called Geek Squad for help with his printer. Instead, he got scammed out of $25,000
An Ontario senior’s attempt to get technical help online led him into a spoofing scam where he lost $25,000. Now, he’s sharing his story to warn others.
Accused of burglary at stepmother's home, U.S. senator says she wanted her father's ashes: charges
A Minnesota state senator and former broadcast meteorologist told police that she broke into her stepmother's home because her stepmother refused to give her items of sentimental value from her late father, including his ashes, according to burglary charges filed Tuesday.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.